Lamb Weston Holdings Q1 Profit Declines; Updates FY 2025 Outlook; Plans To Reduce 4% Headcount

Lamb Weston Holdings

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Kaufen / Verkaufen

(RTTNews) - Lamb Weston Holdings, Inc. (LW), Tuesday reported first-quarter profit of $127.4 million or $0.88 per share compared to $234.8 million or $1.60 per share in the previous year.

On adjusted basis, profit totaled $104.7 million or $0.73 a share compared to $239.5 million or $1.63 a share in prior year.

On average, analysts surveyed by Thomson Reuters estimated earnings of $0.72 per share for the same period. Analysts' estimates typically exclude special items.

Revenue declined to $1.65 billion from last year's $1.67 billion.

The company also announced its decision to implement a restructuring plan to drive operational and cost efficiencies, and improve cash flows.

As part of the plan, Lamb Weston has decided to cut about 4 percent of the company's total workforce and eliminate certain unfilled job positions.

Additionally, the company would permanently close its manufacturing facility in Connell, Washington on October 1, temporarily curtail certain production lines and schedules across its manufacturing network in North America, and reduce capital expenditures.

The frozen potato products supplier expects the restructuring plan to generate approximately $55 million of pre-tax cost savings, and a $100 million reduction in capital expenditures in fiscal 2025. It also expects to record total estimated pre-tax charges of $200 million to $250 million.

Looking forward, the company now expects profit of $395 million to $445 million, and Diluted EPS of $2.70 to $3.15 for the fiscal year 2025. It lowered its adjusted net income target range of $600 million to $615 million, and adjusted diluted EPS of $4.15 to $4.35.

Meanwhile, the company reaffirmed its net sales target range of $6.6 billion to $6.8 billion for the full year 2025.